Rail union issues notice to CN, CPKC to remain on strike despite government intervention

Teamsters Canada Rail Conference has issued a notice to Canadian National and Canadian Pacific Kansas City railroads to "remain on strike", despite a federal government intervention seeking resumption of services, union President Francois Laporte said Aug. 23.

"Things have been moving rapidly this morning and the best way to have a contract is at the bargaining table," Laporte told reporters in Calgary. "Our legal team is looking at all options and we don't believe we would let a third party to decide what's going to be our working condition. This strike continues and we will use our constitutional rights to handle the situation."

His statement came after the Canadian Labor Minister Steven MacKinnon's announcement late Aug. 22 that he was exercising his authority under Section 107 of the Canada Labor Act to direct the Canada Industrial Relations Board to impose final binding arbitration and for railway operations to resume forthwith.

Workers at both the Canadian railroads have been seeking better conditions, particularly their safety standards and conditions.

In a late Aug. 22 statement, CPKC said it was preparing resume services given its priority to the Canadian economy.

"Unfortunately, the TCRC representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss any resumption of service and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction, as well as the CIRB's discretion to proceed with any order," CPKC said in its statement.

Rail cars haul nearly 90,000 b/d of crude oil from Western Canada to refineries primarily in the US Gulf Coast and Midwest, and small volumes to the US East and West Coast.

Also, Western Canadian Sedimentary Basin LPG is shipped in rail cars to the Canadian Pacific Coast for exports to Asia-Pacific.

In 2024, Canada is expected to produce on average 330,000 b/d of propane and 220,000 b/d of butane, excluding imports, according to S&P Global Commodity Insights.

A high percentage of this volume is moved via rail car, whether it be export demand or domestic demand. Also, another 120,000 b/d of propane is for domestic demand, serviced either by truck or rail, and 170,000 b/d of butane is consumed domestically, largely in the refinery sector for gasoline blending. The balance of about 210,000 b/d of propane and 50,000 b/d of butane is exported.